Group 1 - San Juan Basin Royalty Trust (NYSE: SJT) has benefited from unexpectedly cold weather, which is expected to drive natural gas prices higher [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies includes a focus on balance sheets, competitive positions, and development prospects to identify undervalued opportunities [1]

Core Viewpoint - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution to Unit Holders due to excess production costs and low natural gas pricing during November 2024 [1][3] Financial Performance - Hilcorp reported total revenue of $4,880,618 from the Subject Interests for November 2024, with gas revenues of $4,752,207 and oil revenues of $128,411 [2] - Production costs for the Subject Interests were $13,139,376, which included lease operating expenses of $2,634,510, severance taxes of $597,211, and capital costs of $9,907,655 [2] Excess Production Costs - Hilcorp will charge excess production costs of approximately $29,506,766 gross ($22,130,075 net to the Trust) to the next month's distribution [3] - No cash distributions will be made until future net proceeds are sufficient to cover Trust liabilities and replenish cash reserves [3] Gas Production and Pricing - Gas volumes for November 2024 totaled 2,261,819 Mcf (2,513,132 MMBtu), an increase from 1,880,071 Mcf (2,088,968 MMBtu) in October 2024 [4] - The average gas price for November 2024 was $2.10 per Mcf ($1.89 per MMBtu), compared to $1.92 per Mcf ($1.72 per MMBtu) in October 2024 [4] Cash Reserves and Administrative Expenses - The Trustee plans to increase cash reserves to $2.0 million before any future distributions to Unit Holders [5] - Trust administrative expenses for the month totaled $113,093, with interest income of $3,497 applied to cover part of these expenses [3][5] Compliance and Auditing - The Trustee continues to engage with Hilcorp regarding accounting and reporting, with ongoing audits of payments made to the Trust [6] - The Trust's auditing process includes a detailed analysis of Hilcorp's pricing and rates charged [6]

Core Insights - Hilcorp reported total revenue of $3,674,540 for October 2024, with gas revenues at $3,602,210 and oil revenues at $72,330 [1] - The Trust will not declare a monthly cash distribution due to excess production costs and low natural gas pricing for October 2024 [5] - Excess production costs for the reporting period amounted to approximately $21,248,008 gross, with $15,936,006 net to the Trust [6] Financial Performance - Gas volumes for October 2024 were 1,880,071 Mcf, an increase from 1,869,291 Mcf in September 2024 [2] - Average gas price for October 2024 was $1.92 per Mcf, up from $1.42 per Mcf in September 2024 [2] - Total production costs for October 2024 were reported at $7,059,218, including lease operating expenses of $2,468,962, severance taxes of $327,389, and capital costs of $4,262,867 [1] Operational Insights - The Trust's auditing process includes a detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [3] - The Trustee has increased cash reserves to cover Trust expenses during revenue shortfalls, with total cash reserves at $760,919 after utilizing $200,647 for administrative expenses [7] - The Trust's administrative expenses for the month totaled $204,336, with interest income of $3,689 applied to cover part of these expenses [6]

Cash Distribution - San Juan Basin Royalty Trust will not declare a monthly cash distribution for October 2024 due to lower natural gas prices and increased production and capital costs[3] - The production month of August 2024 saw costs exceed proceeds, impacting the decision on cash distribution[3]

Core Viewpoint - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution to Unit Holders due to excess production costs and low natural gas pricing during September 2024 [1] Financial Performance - Hilcorp reported total revenue of $2,853,533 from the Subject Interests for September 2024, with $2,651,297 from gas revenues and $202,236 from oil revenues [2] - Production costs for the Subject Interests amounted to $5,566,414, which included $2,592,399 in lease operating expenses, $362,225 in severance taxes, and $2,611,790 in capital costs [2] Excess Production Costs - Hilcorp will charge excess production costs of approximately $17,863,330 gross ($13,397,497 net to the Trust) to the next month's distribution, meaning no cash distributions will be made until future net proceeds are sufficient [3] Gas Production and Pricing - Gas volumes for September 2024 totaled 1,869,291 Mcf (2,076,989 MMBtu), a decrease from 1,922,538 Mcf (2,136,153 MMBtu) in August 2024 [4] - The average gas price for September 2024 was $1.42 per Mcf ($1.28 per MMBtu), down from $1.79 per Mcf ($1.61 per MMBtu) in August 2024 [4] Cash Reserves and Administrative Expenses - The Trustee plans to replenish cash reserves to $2.0 million before any future distributions to Unit Holders, with current cash reserves at $961,566 after utilizing $55,569 for administrative expenses [5] - Trust administrative expenses for the month totaled $59,870, with interest income of $4,301 applied to cover part of these expenses [3][5] Compliance and Auditing - The Trustee continues to engage with Hilcorp regarding accounting and reporting, with ongoing audits of payments made to the Trust, including revenues and costs [6]

Capital Expenditures - Hilcorp's estimated capital expenditures for 2024 are projected to be $34.0 million, down from an initial estimate of $36.0 million[28]. - Approximately $25.0 million of the 2024 capital budget will be allocated to two drilling projects in the Mancos formation[28]. - Hilcorp's capital expenditures increased by approximately $10,450,220 for the three months and $12,115,022 for the nine months ended September 30, 2024, compared to the previous year[28]. - Capital expenditures increased by approximately $10,450,220 for Q3 2024 and $12,115,022 for the nine months ended September 30, 2024, primarily due to Hilcorp's significantly higher capital project spending budget for 2024[32]. Production and Revenue - Royalty Income for Q3 2024 was $0, a decrease from $4,320,039 in Q3 2023, and for the nine months ended September 30, 2024, it was $6,945,975 compared to $49,256,075 in the same period of 2023[31]. - Total Gross Proceeds decreased by approximately $5.4 million, or 36.8%, for Q3 2024 compared to Q3 2023, and by approximately $59.5 million, or 60.5%, for the nine months ended September 30, 2024 compared to the same period in 2023[32]. - Average natural gas prices decreased from $2.04 per Mcf in Q3 2023 to $1.49 per Mcf in Q3 2024, and from $5.42 per Mcf for the nine months ended September 30, 2023 to $2.20 per Mcf for the same period in 2024[31]. - Production of natural gas decreased from 5,989,625 Mcf in Q3 2023 to 5,691,025 Mcf in Q3 2024, and from 17,466,457 Mcf for the nine months ended September 30, 2023 to 16,743,796 Mcf for the same period in 2024[31]. - Distributable Income for Q3 2024 was $0, down from $3,947,050 in Q3 2023, and for the nine months ended September 30, 2024, it was $5,158,229 compared to $48,005,830 in the same period of 2023, representing a decrease of approximately 89%[35]. - Natural gas production volumes decreased by 298,600 Mcf (5.0%) for the Subject Interests and 8,110,010 Mcf (568.6%) for the Royalty for the three months ended September 30, 2024, compared to the same period in 2023[41]. - Oil production volumes decreased by 6,181 Bbls (35.7%) for the Subject Interests and 5,565 Bbls (46.3%) for the Royalty for the three months ended September 30, 2024, compared to the same period in 2023[42]. - For the nine months ended September 30, 2024, natural gas production volumes decreased by 722,661 Mcf (4.1%) for the Subject Interests and 12,769,823 Mcf (173.2%) for the Royalty compared to the same periods in 2023[41]. - For the nine months ended September 30, 2024, oil production volume decreased by 6,247 Bbls (19.5%) for the Subject Interests and 6,087 Bbls (28.6%) for the Royalty compared to the same period in 2023[42]. Costs and Expenses - Lease operating expenses and property taxes increased by $1.0 million, or 15.7%, for Q3 2024 compared to Q3 2023, and by approximately $2.8 million, or 13.9%, for the nine months ended September 30, 2024 compared to the same period in 2023[32]. - General and administrative expenses increased by $792,057, or 57.8%, for the nine months ended September 30, 2024 compared to the same period in 2023, due to timing differences and transition expenses[35]. - Excess Production Costs for Q3 2024 were $10,294,620 and $11,517,368 for the nine months ended September 30, 2024, with a cumulative balance of excess Production Costs of $11,517,368 as of September 30, 2024[32]. Trust and Audit - The Trust received a payment of $1,037,093.45 from Hilcorp due to underpayment of royalties for the years 2017 through 2020[27]. - The Trust's income and distributions are heavily influenced by natural gas and oil prices, which can fluctuate widely due to market conditions[28]. - Hilcorp's production costs are deducted from gross proceeds to calculate net proceeds, which are then multiplied by 75% to determine royalty income[28]. - The Trust's gross proceeds depend on the volumes of natural gas and oil produced from the Subject Interests, which are depleting assets[28]. - The Trust's ongoing audit process includes detailed analyses of Hilcorp's pricing and rates charged for production[28]. - The Trust cannot acquire new natural gas and oil assets, making its royalty income dependent on existing production volumes[28]. - The Trust's ability to disclose relevant information is dependent upon Hilcorp's timely delivery of accurate oil and gas revenue and production cost information[49]. Market Conditions - The decrease in natural gas production was influenced by market conditions and a decrease in demand[41]. - Average realized natural gas price per Mcf decreased to $1.49 for the three months ended September 30, 2024, from $2.04 in the same period in 2023[39]. - Average realized oil price per Bbl increased to $70.63 for the three months ended September 30, 2024, compared to $62.00 in the same period in 2023[39]. - Royalty Income for the three months ended September 30, 2024, was associated with natural gas and oil production during the period from May 2024 through July 2024[39]. - There were no changes to the contracts for the sale of production from the Subject Interests during the three months ended September 30, 2024[44].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Units SJT New York Stock Exchange FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report September 20, 2024 SAN JUAN BASIN ROYALTY TRUST (Exact name of Registrant as Specified in Its Charter) Texas 001-08032 75-6279898 (State or Other Jurisdiction of Incorporation)(Commission File Number) (IRS Employer I ...

DALLAS, Sept. 20, 2024 /PRNewswire/ -- Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest (the "Unit Holders") due to excess production costs for the Trust's subject interests ("Subject Interests") during the production month of July 2024, as well as continued low natural gas pricing. Excess production costs occur when product ...

DALLAS, Aug. 20, 2024 /PRNewswire/ -- Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest (the "Unit Holders") due to excess production costs for the Trust's subject interests ("Subject Interests") during the production month of June 2024, as well as low natural gas pricing. Excess production costs occur when production costs a ...

Hilcorp will charge the excess production costs of approximately $4,888,522 gross ($3,666,391 net to the Trust) to the next month's distribution. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay then-current Trust liabilities and replenish cash reserves. This month's Trust administrative expenses totaled $53,688. Interest income received by the Trust in the amount of $6,482 will be applied to cover a portion of this month's Trust administrative expenses, with c ...